Two trade organizations representing the technology industry have taken legal action against the US Consumer Financial Protection Bureau, in response to its efforts to regulate payment apps and digital wallets as though they were banks.
On January 16, TechNet, a bipartisan group of technology executives, and NetChoice, an activism group focused on internet freedom, filed a lawsuit challenging a rule issued by the Consumer Financial Protection Bureau in December.
This rule expands the bureau’s authority to oversee “general-use digital consumer payment applications,” with a focus on larger companies that provide payment apps, digital wallets, and other non-bank financial services.
The 259-page rule excludes crypto wallet providers and decentralized wallets, but still targets large non-banking companies.
